Question

Antidilutive securities should be included in the computation of diluted earnings per share but not basic earnings per share. are those whose inclusion in earnings per share computations would cause basic earnings per share to exceed diluted earnings per share. should be ignored in all earnings per share calculations. include stock options and warrants whose exercise price is less than the average market price of common stock.

Answer 1

Answer: should be ignored in all earnings per share calculations.

Explanation:

Antidilutive securities are the financial instruments that will lead to a rise in the earning per share when such financial instruments are changed to common stock.

Antidilutive securities should be ignored in all earnings per share calculations. This is because new shares are being offset when such acquisition takes place leading to a rise in the earning per share.